Forex news and economic trading data 7 September 2015

Asia catch up - ForexLive Asia FX news wrap: China back from holiday, US out today

  • July 2015 Japan leading index flash 104.9 vs 104.9 exp
  • July 2015 German industrial production 0.7% vs 1.0% exp m/m
  • September 2015 Eurozone Sentix index 13.6 vs 16.1 exp
  • SNB total sight deposits CHF 463.92 vs CHF 463.88bn prior
  • Moody's says China's banks are getting less strict in recognizing bad loans
  • Chinese FX reserves fall $93.9bn in August
  • BOJ could be losing confidence on growth - Bloomberg
  • Buba's Weidmann to head up the Banks Bank
  • France may post over 1.0% growth this year says Hollande
  • Forex option expiries for the 10 am (14.00 GMT) New York cut 7 September 2015

All hail the mighty quid! Like Rocky Balboa after going umpteen rounds of getting a good kick-in, up she popped first thing Monday to zoom over 100 pips from the lows. It looked like the same-old same-old as we moved from the Asia highs to the 1.5172 low but then the magic began There was no catalyst, no data, Betty did what Betty does best, turn on a dime when you least expect it. 9 straight daily losses heightened the risk of a reversal and so far it's not disappointed. There's still a long way to go before recent shorts relinquish their positions so the cat is still in the air. Resistance up at 1.5275/80 is keeping us from further gains right now. There's nothing coming from the US to get in her way so maybe the run will continue. GBPJPY managed to nearly double the cable high low pip amount but is looking like that might happen soon as we sit near the highs at 182.25

EURUSD did a funny thing today. It moved on economic data. No, seriously it did. German industrial production came out lower than expected and we fell around 11 pips. No, I'm not making it up. To prove it we fell again a bit later when investors in the Eurozone got cold feet over China and the Sentix index fell. We managed 12 pips that time as investor expectations fell off a cliff. It didn't last and the euro put in a steady climb from the lows to 1.1178, just edging above the Asia highs. We finish right back at the start around 1.1145

USDJPY had already done most of its work in Asia and a healthy Nikkei close (more healthy than recently anyway) kept the pair on the bid. The European range has been far from spectacular and it's hard to see that improving with the US shut

AUDUSD took out another barrier (0.6900) first thing in Asia but has more sitting every 50 pips below down to 0.6750. The bounces are keeping shorts happy and the downtrend is stepping nicely from level to level